Philadelphia Auto parts retailer Pep Boys posted a high third-quarter profit due to an increase in service work.
The company said it earned $2.1 million, compared with a loss of $7.3 million a year ago. The results included a $3.3 million drop in the value of its assets but also $3 million in one-time gains, including sale-leaseback proceeds and an insurance settlement.
The company's sales rose 1.8% to $472.6 million in the quarter that ended Oct. 31.
Service revenue at same-store sales increased 8.9% but merchandise sales, which includes items sold by the service centers, dipped 0.1%.
It was the company's first gain in this key retail indicator since fourth quarter 2006.
Pep Boys said it was pleased with the increase in sales, but said consumer spending is likely to remain conservative through the holidays. The company has about 580 stores and 6,000 service bays.